It’s fashionable to mock New Year resolutions because they often end up as 7-day wonders or even less. We’re so used to multi-tasking at the risk of focusing on nothing that I do get why focusing on two or three things that matter most can be met with such pessimism.

But I rather like making a list of goals and checking it twice (a day). In the first page of my 3-year journal (yes, I still keep one and it’s not digital!), it says “the palest ink is better than the brightest memory.” That’s an ancient Chinese proverb that I hope I won’t forget in the next 10 years. We all need every chance we can get to think more deeply about what we want, what we should focus our energies on, and a chance to start all over again. New beginnings…

So here are some ideas for New Year resolutions for money-smart geeks. Do jump in if you have other suggestions, because deepening the discussion can only do us more good!

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You might get a surprise visit this month from someone who will make your eyes pop out, but it’s not gonna be Santa. This article from the Philippine Daily Inquirer entitled As bad loans are cleaned up, small borrowers suffer  tells of an increasing number of small borrowers who are getting visits from companies they have never heard of before, demanding payment for loans they thought were current.

Such was the experience of Alex Maravilla, who bought a small home in Bacoor, Cavite through a 25-year home loan from National Home Mortgage and Finance Corp. His housing loan was sold by NHMFC along with other sour loans to Balikatan Housing Finance Inc., whose portfolio was managed by Bahay Financial Services (BFS).

BFS is in a growing industry that believes it can make money by going after accounts that the banks have already written off. They will charge higher rates, of course, plus a host of other fees. From what I understand of how the industry works, the collection game can turn nasty. If the collection efforts do not succeed, BFS can still make money by selling foreclosed assets.

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I only have admiration for people who try to educate themselves on financial planning or how to manage their money. When I wrote about Mariannet early this week, I was amazed at those who responded – many of you have come from similar (or even worse) but have managed to lift yourselves by your bootstraps and are, in fact, doing well!

One of you who commented on that post was right: you are a testament that poverty does not have to be a widespread problem. The answer lies within each of us.

In fact, Dr. Noet Ravalo’s column yesterday talked of real-life stories of two drivers who were from the similar backgrounds, but have very different strategies on saving money.

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Oh you better watch out, you better not swipe, you better not flaunt your shiny new card. Christmas spending is coming to town.

Ok, ok, so I’m not the best songwriter in town. :p But the fact is, most of us do have hangovers come January – the kind that make it so hard to go to the bank to pay our credit card bills when Jingle bells no longer chime.

The spendmaster in me talks like a well-meaning conscience: Oh come on, it’s Christmas! What else do you work hard for? The children need the memories, the magic, the gifts, and the ambiance! You can always pay for all the expenses next year. (Voice becoming shrill and high-pitched towards the end of the argument.)

(Photo credit: AFP)

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Warning: the first few paragraphs of MoneySense’s personal finance feature today may read like the diary of a rich, spoiled brat:

When Mardie and I married in 1999, we were better off financially than other newly-weds. We already had a townhouse (my parents helped with the down payment), acquired through a loan from the Government Service Insurance System. I was working then as a lawyer at the Securities and Exchange Commission; Mardie just finished a contract with a foreign firm and started a consultancy business.

We weren’t concerned about other things as I was pretty much relying on my parents for support. Being the youngest and only girl in a brood of six, I had lived a stress-free life especially about money. My dad was and still is a great provider. Growing up, there were plenty of extras and luxuries (I had a credit card when I was a teenager in the 80s), so at a young age, I was used to buying stuff without thinking of how to pay for them. I actually did not give up my dad’s credit card until a few years after I got married. I knew I could always count on my parents to foot some of the bills and pitch in whenever we had money emergencies. Deep down, I felt that my husband was uncomfortable with this set-up, but he seemed to accept it, and was never resentful.

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There’s insurance for credit card debt, personal loans, mortgage loans and other kinds of loans usually offered through direct mailers and sometimes by telemarketers. It’s a complex product with a simple goal: to protect the borrower and the lender from loan default in case something happens to him while paying the loan.

But here’s a voice of reason from a bank that offers this product. “Not everyone needs it.”

Is it worth it to get credit card-related insurance? This is a question only the borrower will be in the best position to answer. Ask yourself: Is it worth it to get someone to help me pay off my credit card dues in the future when I can’t? Those who charge only a little amount on their credit card monthly, or regularly pay off the total credit card balance at month’s end don’t need it. (Read the rest of the article here.)

Protection for rainy days. Do you really need it? Photo from AFP. 

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